Shipping companies have various financing options for acquiring new and second-hand vessels beyond traditional sources like shares and bonds. For new vessels, companies can obtain loans from banks for full payment or installment payments, or receive seller's credit from shipbuilders with installment payments over the construction period secured by a mortgage on the vessel. For second-hand vessels, banks primarily provide term loans or revolving credit facilities secured by the vessel. Syndicated loans with multiple banks and mezzanine financing using hybrid debt/equity instruments are also options.
Diminishing Musharah is best instrument in my opinion for Housing Finance. With its structure and flexibility it can play very important role in growing the Islamic Finance.
There are three possible structures of musharakah partnership in a business venture, namely, permanent musharakah, temporary (redeemable) musharakah and diminishing musharakah. The term Musharakah means joint venture where profits are shared amongst the partners as agreed between them and losses have to be borne by each partner according to their investment.
In DM, a financer and a client participate in either ownership of a joint property, or in a joint commercial business, with the understanding that the client partner will buy the equity share of the financier partner over an agreed period of time until the title to the equity is completely transferred to the client by payments of installments to the financier for purchase over the agreed period. The buying and selling of equity is not stipulated in the partnership contract as it is not allowed - one partner is allowed to give only a promise to buy.
Types of Sukuk (Islamic Bond)
Sukuk are among the most recent products that are created using structural application in the Islamic financial markets. In order to design flexible securities that could respond to different financing needs of economic agencies in the capital market on one hand and to comply with Islamic principles and standards on the other hand, Muslim scholars started thinking about designing Islamic financial instruments. To this aim, expansive studies were conducted into Shariah-compliant contracts and their ability to be used as instruments so that to design financial instruments that would be able to replace bonds and preferred stocks, which are mainly based on Riba and loans with interests. Eventually, Sukuk was designed as an alternative investment instrument for securities with fixed returns such as bonds that are Hiram in the holy Shariah of Islam. After the successful implantation of the Riba-free banking, Muslim scholars managed to design different financial instruments based on Sharia rules and the actual needs of the Islamic countries. These instruments could be divided into three categories:
Diminishing Musharah is best instrument in my opinion for Housing Finance. With its structure and flexibility it can play very important role in growing the Islamic Finance.
There are three possible structures of musharakah partnership in a business venture, namely, permanent musharakah, temporary (redeemable) musharakah and diminishing musharakah. The term Musharakah means joint venture where profits are shared amongst the partners as agreed between them and losses have to be borne by each partner according to their investment.
In DM, a financer and a client participate in either ownership of a joint property, or in a joint commercial business, with the understanding that the client partner will buy the equity share of the financier partner over an agreed period of time until the title to the equity is completely transferred to the client by payments of installments to the financier for purchase over the agreed period. The buying and selling of equity is not stipulated in the partnership contract as it is not allowed - one partner is allowed to give only a promise to buy.
Types of Sukuk (Islamic Bond)
Sukuk are among the most recent products that are created using structural application in the Islamic financial markets. In order to design flexible securities that could respond to different financing needs of economic agencies in the capital market on one hand and to comply with Islamic principles and standards on the other hand, Muslim scholars started thinking about designing Islamic financial instruments. To this aim, expansive studies were conducted into Shariah-compliant contracts and their ability to be used as instruments so that to design financial instruments that would be able to replace bonds and preferred stocks, which are mainly based on Riba and loans with interests. Eventually, Sukuk was designed as an alternative investment instrument for securities with fixed returns such as bonds that are Hiram in the holy Shariah of Islam. After the successful implantation of the Riba-free banking, Muslim scholars managed to design different financial instruments based on Sharia rules and the actual needs of the Islamic countries. These instruments could be divided into three categories:
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Asset Alliance |Financing Broker Dubai
Asset Alliance has a professional team with expertise in finance, mortgage and loan brokers in Dubai.
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The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
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2. Shipping is international in nature and
shipping companies have wide range of
financing options besides traditional sources
such as shares, debentures and bonds. In
shipping major part of finance happens only
through bank loans (from large international
banks) and little through IPO and other debt
securities
Financing options for shipping business
3. Financing options for acquiring a new vessel
There are two financing options available for a
shipping company to acquire a new vessel
1. Traditional financing - Borrowing from banks
2. Seller’s credit – Buyer agrees to purchase the
vessel on deferred payment terms with credit
provided by the builder (yard)
4. Traditional Finance
Under traditional financing
The buyer can obtain a huge loan to pay for
the ship in full or
Get refinancing facility on its payment of pre
delivery installments
5. Seller’s Credit
Ship building contract normally provides for the buyer to pay in
instalments over the duration of the contract.
Scheme of payment under seller’s credit (a model)
Signing of contract- 5%
6 months after contract- 4%
Beginning of keel laying- 4%
Launching- 4%
Delivery- 3%
First 20% of the contract price is expected to be paid by the buyer out of
his own resources, balance 80% to be repaid (treated as advanced from
seller) at regulars intervals with interest (fixed or floating)
6. Bank guarantee in case of seller’s credit
When ship builder is providing seller’s credit to buyer, he needs security for repayment
It may be in the form of
Mortgage over vessel on delivery
Assigning of insurances and earnings
A bank guarantee on behalf of the buyer
In case of bank guarantee, the yard requires the bank to issue a commitment letter to
the yard at the time of or within a short period of signing the building contract. The
Banker insists on mortgage over vessel or other security to secure buyer’s counter
indemnity.
The yard requires the buyer to issue promissory notes for series of payments and the
builder gets the benefit of assigning sellers credit to third parties by endorsing them.
7. Financing options for acquiring Second hand
ships
Very rarely seller’s credit is available since in most cases the buyer is also another
shipping company
The Core activity of a shipping bank’s business is lending loans to finance second
hand ships.
Banks not only assist owners in purchasing a second hand ship but also
refinancing balloon instalments at the end of the life of a loan (Balloon payments
are lumpsum repayment made apart from regular instalment in order to reduce
interest burden.
8. Loan facility is made available either as a term loan or revolving credit .
Term loan – one time drawing repayable in equal instalments.
Interest rates are tied to LIBOR, Bank’s lend on lower margin for highly reputation companies
while new companies borrow on higher margins.
Actual Interest rate is fixed periodically with the borrower given the option of fixing the interest
rates for 3-6 month periods, sometimes 1,6,9 months are also available, borrower selects the
length of each interest period.
Revolving credit – repayments and redrawing against available amount, most likely payable in
every three or six months. Revolving facility suits shipping companies that buy and sell on regular
basis, allowing them to repay while selling and draw to purchase new tonnage. The whole facility
still needs to be repaid by a fixed date. Interest is fixed in the same way as a term loan.
Loan and guarantee facilities from banks for second hand
ships
9. Guarantee Facility
For financing new buildings, banks are asked to issue
guarantee, rarely if second hand ships are sold on credit,
then seller expects a guarantee from bank.
Owner indemnifies the banker and also pays commission
for this service Owner also mortgages the ship or grants
security to provide counter indemnity
10. loans with multicurrency options
Mostly loans are borrowed by shipping companies in US$ to match operating
income, but if an option to convert loans into other currencies are required then
international loans with Multicurrency Options are available from international
banks. In such cases the borrower is permitted to specify an alternative currency
and the loans and interest payment will be denominated in that currency.
Borrowers opt for this to take advantage of linear interest rates applicable to
certain currencies
But it exposes the borrower to currency fluctuations, because his operating
income is in a different currency.
Banks also run into risk if the selected currency moves too much away from base
currency (US$) during the interest period. In such circumstances the borrowers
are asked to make additional repayments
11. Syndicated loans (consortium loans)
One lead bank will administer the facility on behalf of syndicate
The lead bank has the largest share of the loan
Syndicate loan agreements contains provisions regulating relationships between
members
If one bank fails to make available it’s part, others are expected to step in
Borrowers dealings are with the lead bank (agent)
Security can be given in favour of one bank – Name of the bank to be stated in
security trust deed
Mortgage of ship (Governed by the law of the flag) – can be in favour of agent
bank, but an express declaration of trust of the benefit of mortgage by trustee
bank in favour syndicate members is needed.
12. Mezzanine finance
Mezzanine financing – this refers to raising finance by issuing hybrid
instruments that has both the features of owned and borrowed
sources.
Eg :Convertible debenture, this is a borrowed source which can be a
converted into share (an owned source) after a specified period of
time. Thus it has the features of both debt and owned source and
therefore a hybrid instrument, Similarly preference share is also a
hybrid instrument where even though it is a owned source its
dividend is a fixed percentage as in the case of interest paid on a
borrowed sources